UDR, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net Income per diluted share was $0.67 for the quarter ended September 30, 2026, compared to $0.12 in the same period in 2025; Year-to-Date (YTD) Net Income per diluted share was $1.45 in 2026 versus $0.46 in 2025.
• Funds from Operations (FFO) per diluted share was $0.62 for the quarter and $1.85 YTD in 2026, remaining flat year-over-year for both periods compared to $0.62 and $1.81 respectively in 2025.
• FFO as Adjusted (FFOA) per diluted share was $0.65 for the quarter and $1.90 YTD in 2026, flat year-over-year compared to $0.65 and $1.90 in 2025.
• Total revenue decreased by $3.8 million (0.9%) year-over-year in the third quarter, driven by revenue from sold properties offsetting growth from Same-Store and acquired communities.
• Same-Store (SS) Revenue grew 1.8% year-over-year and 0.8% sequentially in Q3 2026; SS Expense grew 2.2% year-over-year and 2.9% sequentially; SS NOI grew 1.6% year-over-year but declined 0.1% sequentially.
• YTD 2026 Same-Store Revenue grew 1.6%, Expense grew 3.2%, and NOI grew 0.8% compared to YTD 2025.
• Total indebtedness stood at $5.8 billion as of September 30, 2026, with a weighted average interest rate of 3.45% and $333.6 million maturing through 2027.
• Liquidity was approximately $641.6 million as of September 30, 2026, comprising cash and undrawn credit facility capacity.
• Consolidated Fixed Charge Coverage Ratio was 5.0x as of September 30, 2026, up from 4.9x in the prior year period.
• Consolidated Net Debt-to-EBITDA (adjusted for non-recurring items) was 5.5x, unchanged from the prior year period.

Guidance and Future Outlook:

• Raised full-year 2026 Net Income per diluted share guidance to $1.58–$1.60 (previously $1.03–$1.11), with a midpoint of $1.59, an increase of $0.52.
• Raised full-year 2026 FFOA per diluted share guidance to $2.54–$2.56 (previously $2.49–$2.57), with a midpoint of $2.55, an increase of $0.02.
• Adjusted full-year 2026 FFO per diluted share guidance to $2.48–$2.50 (previously $2.47–$2.55), with a midpoint of $2.49, a decrease of $0.02.
• Raised full-year 2026 Same-Store Revenue growth guidance to 1.4%–1.8% (previously 0.75%–2.00%), with a midpoint of 1.6%, an increase of 22.5 basis points.
• Raised full-year 2026 Same-Store NOI growth guidance to 0.8%–1.2% (previously 0.00%–1.25%), with a midpoint of 1.0%, an increase of 37.5 basis points.
• Adjusted full-year 2026 Same-Store Expense growth guidance to 2.7%–3.1% (previously 2.75%–3.75%), with a midpoint of 2.9%, a decrease of 35 basis points.
• Established fourth quarter 2026 Net Income per diluted share guidance of $0.13–$0.15.
• Established fourth quarter 2026 FFO per diluted share guidance of $0.63–$0.65.
• Established fourth quarter 2026 FFOA per diluted share guidance of $0.63–$0.65.
• Excluding the Apollo joint venture communities, full-year 2026 guidance midpoints for Same-Store Revenue, Expense, and NOI would be 1.45%, 2.9%, and 0.75%, respectively.
• Aggregate investment balance of the Debt and Preferred Equity portfolio is expected to be approximately $250.0 million at year-end 2026, excluding a pending Inland Empire acquisition.

Business Segments and Product Lines:

• West Region: Q3 2026 Same-Store Revenue grew 3.9% YoY, Expense grew 3.8%, and NOI grew 3.9%; Physical occupancy was 96.8%.
• Northeast Region: Q3 2026 Same-Store Revenue grew 2.5% YoY, Expense grew 1.6%, and NOI grew 3.0%; Physical occupancy was 96.7%.
• Mid-Atlantic Region: Q3 2026 Same-Store Revenue grew 0.3% YoY, Expense grew 3.0%, and NOI declined 1.0%; Physical occupancy was 95.9%.
• Southwest Region: Q3 2026 Same-Store Revenue declined 0.4% YoY, Expense declined 0.3%, and NOI declined 0.5%; Physical occupancy was 96.9%.
• Southeast Region: Q3 2026 Same-Store Revenue declined 0.9% YoY, Expense grew 2.0%, and NOI declined 2.2%; Physical occupancy was 96.4%.
• Total weighted average Same-Store physical occupancy was 96.5% in Q3 2026, a 0.2% decline year-over-year.
• As of September 30, 2026, UDR owned or held an ownership position in 60,617 apartment homes, including 634 homes under development.
• Strategic shift to expiration schedules resulted in fewer lease expirations in the fourth quarter compared to typical levels.

Market and Competitive Landscape:

• Same-Store results were supported by strong occupancy in the mid-96% range and year-over-year improvement in bad debt.
• Blended lease rate growth fell within the company's expected range.
• Continued improvement in resident retention contributed to strong expense control.
• Renewal lease offers were higher than those in the third quarter.

Risks and Challenges:

• Revenue decreases were observed in the Southwest and Southeast regions year-over-year in Q3 2026.
• Same-Store NOI declined sequentially in the West, Mid-Atlantic, and Southwest regions in Q3 2026.
• Physical occupancy declined year-over-year in the Northeast, Mid-Atlantic, Southwest, and Southeast regions.
• Forward-looking statements are subject to risks including general market conditions, inflation/deflation impacts, capital availability, geopolitical tensions, interest rate changes, and joint venture performance risks.

Management Commentary and Tone:

• Tom Toomey, Chairman, President, and CEO, stated that third-quarter operational results and FFOA per diluted share exceeded expectations, driving the second guidance raise of 2026.
• Management expressed excitement regarding the closed strategic partnership with Apollo, noting it expands capital access, strengthens the balance sheet by reducing leverage, improves portfolio quality, and positions UDR for value-creating investment opportunities.
• Mike Lacy, Chief Operating Officer, highlighted that operating from a position of occupancy strength and with a favorable expiration schedule positions the company to drive revenue and NOI growth.

Other Key Points:

• Closed a $2.0 billion strategic partnership with Apollo by contributing 19 apartment communities (7,059 homes) to a joint venture; UDR received $1.34 billion in equity capital, retained a one-third interest, and will earn an asset management fee.
• UDR retains an option to repurchase Apollo's interest at a 7.0% target IRR starting at the fifth anniversary of closing.
• Repurchased approximately 5.2 million shares in October 2026 at a weighted average price of $35.48 for $185.1 million; approximately 20.3 million shares remain available under the program.
• Since recommencing repurchases in September 2025, the company has repurchased 16.7 million shares for $603.2 million at a weighted average price of $36.06.
• Sold two communities in Seattle and Nashville (412 homes) for $183.0 million; under contract to sell a 396-home community in the Washington, D.C. area for approximately $69.0 million.
• Expanded joint venture with LaSalle Investment Management to approximately $958.3 million, receiving $103.2 million in cash proceeds.
• Acquired a 483-home community in California's Inland Empire for $160.3 million and agreed to acquire a 237-home community in the first half of 2027.
• Received a full repayment of $29.5 million on a Preferred Equity investment in Orlando, FL.
• Board of Directors declared quarterly dividends of $0.145 per share for October, November, and December 2026, totaling $0.435 per share for the quarter (a 1.2% increase over 2025).
• The December 2026 dividend will mark the 220th consecutive dividend paid.
• Appointed Scott McCallum as Chief Investment Officer subsequent to quarter-end.
• Published its eighth annual Corporate Responsibility Report.